XOMA Shares Up 150%, but in the Wrong Way

XOMA shares fall hard on news of additional dilution.

Dilution is a way of life in the biotech industry. The timeline for getting drugs through each phase of development and in front of the FDA for approval takes many years. More often than not, a few handfuls of them. That kind of timeline requires boatloads of cash, and one of the most common ways to get it is by selling additional shares of stock. Today, Brenton Flynn and Max Macaluso outline some of the most recent offerings to hit the market, including one company with a massive 150% increase in shares outstanding since the end of 2011.